The latest Federal Open Market Committee minutes struck a hawkish tone, pressuring risk assets including cryptocurrencies.
Summary
- Policymakers warned inflation progress may be “slower and more uneven,” signaling rate cuts are not imminent and that hikes have not been fully ruled out.
- With Treasury yields rising and easing deemed potentially premature, high-beta assets like Bitcoin, Ethereum and XRP faced renewed selling pressure.
- BTC holds near $66.8K but remains below its 50-day SMA; ETH consolidates near $1,960 with weak inflows; XRP trades under key Bollinger resistance near $1.46.
Policymakers acknowledged that while inflation has cooled from its highs, progress toward the Fed’s 2% target “might be slower and more uneven than generally expected,” and warned that the risk of inflation remaining persistently above target “was meaningful.”
That language reinforced expectations that rate cuts are not imminent and that policymakers remain cautious about declaring victory over price pressures.
The minutes also revealed that several participants would have supported a “two-sided” description of risks, signaling that further rate hikes have not been fully ruled out if inflation reaccelerates. At the same time, officials indicated that additional policy easing “may not be warranted” until there is clear evidence that disinflation is firmly back on track.
While two members dissented in favor of an immediate cut, the broader message emphasized patience and vigilance, a stance that typically tightens financial conditions and weighs on high-beta assets such as crypto.
With Treasury yields climbing and expectations for near-term liquidity fading, digital assets faced renewed selling pressure. This sets the stage for a closer look at how Bitcoin (BTC), Ethereum (ETH) and XRP (XRP) are reacting on the charts.
Crypto price prediction: Bitcoin (BTC)
Bitcoin extended its pullback following the hawkish Fed minutes, briefly dipping toward $65,000 before stabilizing before staging a rebound. It is currently trading around $66,800, but remains well below the 50-day SMA near $82,600, which signals that the broader short-term trend is still bearish.
The RSI is hovering around 34, recovering from near-oversold territory but still below the neutral 50 level, suggesting weak momentum despite the bounce. Immediate support sits near $64,000, followed by the recent low around $60,000.
On the upside, resistance is seen near $70,000, with stronger structural resistance around $75,000–$76,000. Unless BTC reclaims those levels, rallies may continue to face selling pressure.
Ethereum (ETH)
Ethereum saw a sharp sell-off in early February, dropping toward the $1,900 zone before stabilizing. It is now trading around $1,960, consolidating in a tight range amid the Fed-driven volatility.
The Balance of Power indicator has turned slightly positive, hinting at mild buying pressure, but CMF remains marginally negative, suggesting capital inflows are still weak. Immediate support lies at $1,900, with a deeper floor around $1,800.
On the upside, ETH faces resistance near $2,050, followed by $2,200, where prior breakdown levels sit.
XRP
XRP remains under pressure compared to BTC and ETH. After sliding from above $2.00 earlier in the year, it recently bounced from the $1.20–$1.25 area and is currently trading near $1.41.
Price is sitting below the mid-Bollinger Band (around $1.46), while the upper band near $1.65 acts as dynamic resistance.
CMF remains slightly negative, indicating limited buying conviction. Immediate support rests at $1.35, followed by the recent swing low near $1.25. Resistance is seen at $1.46, with a stronger barrier at $1.60–$1.65.